African Export-Import Bank (Afreximbank) recently joined a consortium of financial institutions in London to sign a landmark syndicated term loan facility for Bank of Industry (BOI) Nigeria of up to EUR 2 billion.

Afreximbank acted as one of the Initial Mandated Lead Arrangers, Bookrunner and Facility Agent. The Bank disbursed its participation amount of EUR 175 million in September 2024 in two tranches of EUR 115 million in Tranche A and EUR 60 million under Tranche B.

Afreximbank was also involved in the processes leading to financial close and disbursement of up to EUR 2 billion by all the lenders, including the early bird syndication in August 2024 as the Facility Agent. BOI is expected to use the proceeds of the facility to finance trade and trade related projects of eligible corporates in Nigeria.

“This significant transaction underscores Afreximbank’s commitment to supporting Nigeria’s economic growth,” said Mr. Denys Denya, Senior Executive Vice President at Afreximbank. “By actively participating as lender, bookrunner, and agent, we are not only providing crucial financing to Bank of Industry but also facilitating access to critical resources that will empower Nigerian businesses and drive sustainable development across the country.”

Dr. Olasupo Olusi, Managing Director of Bank of Industry, stated: “This landmark syndicated facility of up to EUR 2 billion is a testament to the confidence global financial institutions have in the Bank of Industry’s track record and its pivotal role in driving Nigeria’s industrial and economic transformation. We are particularly grateful for Afreximbank’s significant participation and unwavering support both as a lender and facilitator in this transaction. This funding will empower us to further finance critical projects, ultimately fostering sustainable growth and development for corporates across Nigeria.”

The facility is backed by a first demand guarantee and is structured into two tranches. Tranche A is guaranteed 85% by the Africa Finance Corporation and 15% by the Central Bank of Nigeria (CBN) for both principal and interest. Tranche B is 100% guaranteed by the AFC for both principal and interest. The facility has a three-year tenor with quarterly repayments commencing after the first year.